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Tabcorp issued its Q1-2013 trading update

Wednesday October 17, 2012 : TABCORP REVENUES RISE
Trading update shows strong performance from online operations
The Australian gambling group Tabcorp issued its Q1-2013 trading update Wednesday showing year-on-year overall revenue growth of 2.9 percent to A$488.9 million.
“Tabcorp has started FY2013 well and the company’s strategies continue to deliver improved revenue," said the company’s Chief Executive Officer, David Attenborough.
"Our investments in expansion initiatives, such as Tabcorp Gaming Solutions and the new Victorian Keno business are contributing to company growth.”
Tabcorp’s reported Wagering result was impacted by the new Victorian Wagering and Betting Licence terms, which commenced on 16 August 2012. The company's share of the new Victorian Joint Venture has changed from 75 percent to 50 percent.
Total Wagering revenue, including the Victorian Racing Industry's interest, grew by A$20.0 million, or 4.5 percent on the prior corresponding period.
After accounting for the VRI’s interest, Tabcorp’s reported Wagering revenue was A$384.6 million, down 2.4 percent.
A more positive picture emerged on Keno, where revenue grew 17.7 percent to A$53.9 million, bolstered by the game’s launch in Victoria and continued growth in NSW and Queensland.
Tabcorp’s Media & International business also grew revenue by 6.2 percent to A$49.5 million.
The company’s new gaming services provider, Tabcorp Gaming Solutions (TGS) went live on 16 August 2012 as part of Tabcorp’s response to Victoria’s new gambling industry structure. TGS delivered A$13.1 million in revenue in 1Q13.
The discontinued (licence expired) Victorian Tabaret business contributed A$130.2 million in 1Q13 revenue.
Fixed odds revenue continued to grow strongly for Tabcorp’s Wagering business, up 30.3 percent on the prior corresponding period to A$94.7 million. The increase in fixed odds revenue more than exceeded the decline in totalisator revenue, reflecting a shift in customer preferences toward FOBTs..
Trackside, which is now widely distributed in 2,700 venues across NSW and Victoria,
had revenue growth of 8.7 percent.
Luxbet, the group's online and telephone betting service, continued to make strong progress driving both turnover and revenue as it competed for share in the Northern Territory corporate bookmaking market. Luxbet revenue grew 52.8 percent to A$8.1 million in 1Q13.
Digital turnover, excluding Luxbet, grew a creditable 12.9 percent, supported by the widespread adoption of mobile devices and changing customer preferences.

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